The Internal Revenue Service on Thursday said that over the next three years it intends to increase audit rates for big corporations, partnerships and multimillionaires.

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The agency released an update to its strategic operating plan that includes nearly tripling the audit rate on corporations that have assets over $250 million, raising it to 22.6% in the 2026 tax year. The rate was 8.8% in 2019.

For complex partnerships with assets of more than $10 million, the IRS said it intends to increase audit rates by nearly 10-fold, to 1% in tax year 2026 from 0.1% in 2019.

The IRS also said it is targeting a 50% increase in audit rates for individuals with total positive annual incomes of more than $10 million. That rate will jump to 16.5% in the 2026 tax year from 11% in 2019.

The agency said again that it would not increase audit rates on individuals and small businesses that earn less than $400,000, in keeping with President Joe Biden’s pledge not to increase taxes on that income group.

“The changes outlined in this report are a stark contrast to the years of under-funding that deteriorated taxpayer service and tax enforcement, frustrating taxpayers, the tax community and IRS employees alike,” IRS Commissioner Danny Werfel said in a statement.

The IRS was expecting to see some $80 billion in funding over the next 10 years coming from the 2022 Inflation Reduction Act, but that number has been cut by $20 billion through a top-line spending deal.

In the deal to address the debt ceiling and avoid a US default last June, Democrats agreed to Republican demands to allow for $20 billion of the Inflation Reduction Act funds to be rescinded.

According to the plan, $10 billion was to be trimmed out of funds for enforcement in fiscal year 2024, and an additional $10 billion was to be taken out the following year.

However, in January, Democrats agreed to an acceleration of the $20 billion cut in an effort to get a federal spending law passed to avoid a partial government shutdown.

Werfel said that under the current funding structure, the agency said it would run out of the money from the Inflation Reduction Act allotted specifically for modernizing its systems by fiscal year 2026.

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